All Forum Posts by: Daniel Gipp

I second Security Service.   Low rates (add .125% to rate listed online), zero loan origination fee, and up to $5k paid of 3rd party closing costs.   Only downside is that they will only do 15 year terms on investment properties.   

One local bank that is still relationship based in Plains Capital Bank.    They are willing to do creative loans like interest only during rehab into auto refinance or blanket loans.   

@Betty Cruz

He might have been hesitant to do so because he already made a claim and kept the money.   I recently terminated a contract on a property where my insurance company told me to make sure the roof was repaired because there was a claim made from the April hailstorm.  

Since the seller kept the money and didn't make the repairs, they told me policy would exclude the roof and siding.  

I took a look at that duplex a couple of months ago as well.   There aren't many duplexes hitting the market so I imagine a good number of us have looked and passed on it. 

I questioned the ability to raise the rent by as much as the selling agent was touting.  Granted I know that a few blocks can make a major difference, but not too far that from that property the whole street of 3 bed duplexes are renting from $875-$950

That being said, I like the area you are looking at.  

Tony Castronovo they also require 25% down which I don't think is too far off from other portfolio lenders. The time to close could be seen as a drawback. They say they need at least 45 days but in my experience it took just under 30. I've also talked to Plains Capital bank. They will do a 20 year term loan with 25% down. They will also lend on a distressed property but require a higher interest rate in order to do so.

SSFCU only does 15 yr notes as well but it's hard to beat. No loan origination fees and they pay up to $5000 in the 3rd party closing costs (like title insurance, appraisal fee, etc)

Originally posted by @Rick Pozos:

If the house you are leaving is in such good shape and everybody says its great, why didnt you think it was great enough to stay in?? Just wondering.

 That's a good question.  We wanted to be closer to the private school where we plan on sending my daughter.   We only moved 20 mins away from our old home, but we are now 5-7 mins away from Church and the school.    

My short term would also look better because my agent agreed to do the property management at 5% for the first few years since he was the buying agent on the new construction home.    

I thought about lowering the percentages but wanted to make sure I stay conservative.  I feel like my house is in really good shape.  Up until last year its just been me and my wife in a 4/3 2096 sqft home.   Everything looks like its in really good shape.  When I had the 3 different property managers/real estate agents in the home for their interviews, I got a lot of comments about the house looking like it wasn't lived in!.   

6 months ago I started building a new home in a different part of town.   Rather than sell my existing home, I decided to turn it into a rental home.   The numbers weren't great, but I had a hard time allowing myself to sell it.   Now that the time is here, I'm having second thoughts and looking for help.   The house was built in 2010 in a cookie cutter subdivision.  Today my agent received a call from another agent who had a buyer who missed out on a home with the same floor plan and wanted to see if i would consider an offer on my house.   The location is just outside the San Antonio and Converse city limits in Texas.  

Expected Home Value - $178k (Purchased at $145k) 
Projected monthly rent - $1,375
expected cash flow assuming 8% capex, 8% maintenance, 10% vacancy - $80 a month (Principal pay down is $170 a month)

I only owe $116k so I expect to clear $43k after selling fees and commissions.    The question is, should i continue with the plan to rent out the property or should i look at taking the sale proceeds and buying a property that would cash flow better?   I imagine that since it was my former primary residence that i am exempt from the capital gains whereas after 5 years that would no longer be the case.  

What details did I leave out of the consideration?   

Does anyone have suggestions on a good local (San Antonio ) law firm to set up my LLC? I've had two consultations thus far and looking for recommendations from the community. One quoted me $1000, but I just didn't get a good feeling about him during the meeting. The other was $1,500 but I have no way of really researching their work.

Will Pritchett , thanks for the reply. It never hurts to hear the thought process someone else goes through. I'm glad to hear it's pretty much along the lines I was thinking. 6 years ago I only put 3.5% down and all the equity I've built is from the fact that I was super aggressive and trying to pay it off early. I haven't seen much appreciation because there are still a ton of builders in the area. I thought about selling and using the equity to buy a different property but would loose so much between the selling costs and closing costs on the new property. I decided to keep it since it cash flows with repairs/cap ex that I believe are over estimated since the house age is relatively low. Not counting on it in my calculations, but I also hope to see a jump in value once the new home builders are done.